Sandwich Generation: Old Story, New Problem

Boomers were the first to struggle en masse with both the financial needs of kids in college and retired parents outliving their nest egg. Now, the kids may be out of college—but moved back home. Meanwhile, mom or dad has not only run short on cash—but needs a daily caregiver too.

Some 35% of boomers have been responsible for the care of an elderly parent, according to an AARP survey. That is up from 26% in 1998. Meanwhile, half of boomers are raising a young child, including grandkids, or providing financial assistance to an adult child, according to Pew Research Center. Go ahead—just try to retire.

According to a report from the Sloan Center on Aging and Work at Boston College:

“Increasing numbers of older adults are involved in care giving and financial support of their parents, spouses, adult children and grandchildren. Many older adults today find that they need to continue to work in order to help family members financially, while others need flexibility in their work schedules to meet care-giving demands. Some find that they need to cut back on their hours or retire prematurely in order to provide care-giving.”

Adult kids moving back home and needing help with their own children is most likely a temporary issue for most families. But personal care giving for elderly parents—not just financial support—is the blow few may have seen coming. The need will only rise over time, compounded by a soaring divorce rate among retirees that leaves many alone even before their spouse passes away. The divorce rates for couples over 50 has doubled the past 20 years, reports the National Center for Family and Marriage. Many of these gray divorcees say they have no plans to remarry, and thus they forego the likeliest and cheapest caregiver they’d ever find.

The upshot: the sandwich generation will be stuck in the middle a while longer.

Dan Kadlec is a journalist who has written about personal finance for TIME and other outlets for 25 years. He is the author of three books, a leading voice in the global financial literacy movement, and strategic adviser to the National Financial Educators Council.

Kadlec's latest is A New Purpose: Redefining Money, Family, Work,Retirement, and Success